The White Law Group reviews the regulatory history of Geneos Wealth Management.    

The following is a brief breakdown of publicly available information regarding Geneos Wealth Management and its securities sales practices and FINRA regulatory history. FINRA is the self-regulator that oversees brokers and brokerage firms.   

Geneos Wealth Management Inc. (CRD#: 120894), a FINRA registered broker-dealer based in Centennial, CO, which reported revenue of $141 million in 2021.  The firm has several reportable events in its FINRA Broker Report (or CRD).    

According to the firm’s CRD, Geneos Wealth Management has six regulatory disclosures. Regulatory actions could be detrimental to a firms’ reputation as they may include censures, fines, restitution among others.   

Geneos Wealth Broker Misconduct and Customer Complaints   

There have been several cases of registered representatives employed by Geneos Wealth Management who were allegedly involved in broker misconduct and fraudulent activities.  Broker dealers are required to supervise their employees. If they fail to do so they may be held liable through a FINRA arbitration claim.  

In 2017, FINRA reportedly barred Geneos Wealth advisor Randoph Eddelmon III after the firm fired him for allegations of “Inappropriate and unauthorized use of client information.” Geneos reportedly employed Eddelmon in Scottsdale, Arizona from 2005 until 2017. A Geneos customer filed a complaint against Eddelmon in 2018 for allegations of unsuitable investments and variable annuity switching.  

In 2018, FINRA barred Bradley Tennison after allegations of selling away from his member firm. The SEC and the Arizona Securities Commission later settled charges with Tennison for securities fraud allegations involving The Joseph Project.  

On June 23, 2020, Tennison reportedly pleaded guilty to the attempted sale of unregistered securities, a felony, before the Superior Court, Maricopa County, Arizona, in State of Arizona v. Bradley J. Tennison, Case No. CR2019-002711-002 DT. The Superior Court entered a judgment of guilty against Tennison, sentenced him to supervised probation for a term of three years, and ordered him to pay restitution of $8,185,000.  

The charges stemmed from Tennison’s alleged sale to nine investors of unregistered securities in The Joseph Project. Tennison purportedly told investors falsely that the funds would be invested with banks that would use the investment proceeds for after-hours trading to generate returns; the investment was 100% safe; and that profits would be used, in part, for religious and humanitarian projects.  

Tennison was reportedly registered with Geneos Wealth Management in Mesa, Arizona from 2005 – 2018.  

FINRA Rule 3110 Supervision   

The Financial Industry Regulatory Authority (FINRA) has several rules in place to regulate broker-dealers, including the FINRA Rule 3110 Supervision rule. This rule requires broker-dealer firms to establish and maintain a system to supervise the activities of their associated persons (e.g., brokers) to ensure that they comply with securities laws and regulations.   

Broker-dealers are required to designate an appropriately qualified supervisor who is responsible for the supervision system. 
The rule further requires firms to develop written supervisory procedures (WSPs) that are reasonably designed to achieve compliance with applicable securities laws and regulations, as well as FINRA rules. Then they must implement the WSPs effectively and ensure that they are followed by all associated persons. 
 
FINRA Rule 3110 also requires that broker-dealers establish a process for identifying and responding to red flags that may indicate potential violations or misconduct by associated persons. This includes conducting periodic reviews of customer accounts and transactions, as well as monitoring communications (e.g., email, social media) to detect potential violations.   

FINRA Sanctions Geneos Wealth for LJM Funds and GPB Capital Offerings  

Geneos has disclosed six regulatory actions on their CRD. Regulatory actions taken against a broker-dealer may include censures, fines, suspensions and restitution, among other sanctions. They can have serious consequences for a broker-dealer’s profile and reputation.      

On March 18, 2022, the regulator has  censured and fined Geneos Wealth Management $150,000 after the firm allegedly failed to supervise recommendations of the high-risk LJM Preservation and Growth Fund (LJM).    

The firm also paid restitution of $250,710.41 and agreed to address and remediate the supervisory issues, according to a Letter of Acceptance Waiver and Consent.    

From November 9, 2016, and February 6, 2018, Geneos Wealth reportedly failed to reasonably supervise representatives’ recommendations of the LJM Preservation & Growth Fund (LJM), an alternative mutual fund.      

Geneos representatives sold $2.5 million in LJM funds to customers, according to FINRA’s findings. LJM’s value dropped 80% during an extreme volatility event in February 2018 and the fund ultimately liquidated and closed, resulting in hundreds of thousands in losses for Geneos’ customers.    

Also in 2018, Geneos allegedly failed to notify three clients that GPB Capital Holdings, LLC, an issuer of private placement investments, failed to make required filings with the Securities and Exchange Commission, including filing audited financial statements.    

On April 27, 2018, GPB Capital sent a letter to broker-dealers that sold GPB Capital investments, including Geneos Wealth, stating that GPB Capital was in the process of registering certain classes of securities issued by certain of limited partnerships, including GPB Automotive Portfolio, with the SEC. As part of that process, GPB Automotive Portfolio was required to file audited financial statements. The letters further stated that the delivery of GPB Automotive Portfolio’s audited financial statements would be delayed pending the completion of a forensic audit.  

After Geneos learned of the delays, the firm allegedly sold a GPB offering to three clients who reportedly sustained losses.  

SEC charges Geneos with Conflicts of Interest  

In 2018, the SEC reportedly charged Geneos Wealth Management and two other firms with conflicts of interest regarding mutual fund sales. The firms settled charges for allegedly breaching fiduciary duties to clients and generating millions of dollars of improper fees in the process.  

FINRA BrokerCheck   

To access Geneos Wealth Management’s full CRD, you can visit https://brokercheck.finra.org.   

FINRA BrokerCheck is a free online tool that allows investors to research the background and professional history of brokers, brokerage firms, and investment advisors. The Financial Industry Regulatory Authority (FINRA) operates BrokerCheck and it provides valuable information to help investors make informed decisions before working with a financial professional.   

With BrokerCheck, you can find out if a broker or firm is registered, if they have any regulatory actions or complaints against them, and if they have disclosed any bankruptcies, criminal convictions, or other red flags. BrokerCheck also provides information on a broker’s education, qualifications, and employment history, as well as any disclosures related to arbitration or civil litigation.   

To use BrokerCheck, simply enter the name or registration number of a broker or firm in the search box on the FINRA website. You can also search for brokers and firms by location or by specific products they offer. Once you have found the broker or firm you are interested in, you can view their profile and review any available information about their background and history.   

Hiring a Securities Attorney  

If you have any questions about investments you made with Geneos Wealth Management or if you believe that you have been the victim of securities fraud, The White Law Group may be able to help.  To contact the firm, please call 888-637-5510   

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.         

Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.          

With over 30 years of securities law experience, including experience working at FINRA and the SEC, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions attempt to recover their investment losses.          

Although our offices are in Seattle, Washington and Chicago, Illinois, the firm reviews securities fraud cases throughout the country. For more information on The White Law Group, please visit https://whitesecuritieslaw.com.